Dogwifhat (WIF), a memecoin project on the Solana blockchain, saw its price surge 16% in a single day, peaking at $2.34 on July 1. This uptick marks a significant recovery phase following a 60% increase from its recent low of $1.47 just a week earlier.
WIF’s outlook for July remains optimistic, driven by the emergence of a bullish reversal pattern known as the BARR (bump-and-run reversal). This pattern has been unfolding since early June, with WIF now in the breakout phase, positioned approximately 25% below its target of around $2.81.
The BARR pattern typically progresses through three phases: the lead-in, bump, and run phases. Initially, there is a prolonged bearish trend marked by lower highs and lower lows, forming a descending trendline during the lead-in phase. A sharp deviation from this trendline defines the bump phase, followed by a recovery that breaks above the lead-in phase trendline, known as the run phase.
Historically, BARR bottom patterns have shown a 76% success rate in achieving their upward targets, suggesting a potential price target of $2.81 for WIF by the end of July. However, WIF faces resistance near its 200-4H exponential moving average (EMA) at approximately $2.37. A retreat from this level could see the price retesting support around the 50-4H EMA near $2.06.
The recent surge in WIF’s price is also influenced by positive developments in the Solana ecosystem, notably the application for a Solana exchange-traded fund (ETF) in the United States by 21Shares. Since the filing of this application with the SEC on June 28, WIF has rallied over 22%, reflecting growing momentum in its recovery trajectory.
Similar movements have been observed among other Solana-based memecoins such as Bonk, Book of Meme (MEME), and PopCat, which have also experienced notable price increases.
The potential approval of Solana ETFs could attract institutional investment and broaden market adoption of Solana and its affiliated projects. This favorable sentiment may further bolster prices across the Solana ecosystem, potentially aiding WIF in achieving its target of $2.81 by the end of July.
Please note that this article does not provide investment advice. Readers should conduct their own research and analysis before making investment decisions, as all investments involve risks.